The euro has seen a significant depreciation in its value recently. This is due to the uncertainty in the outlook of its currency as Greece is having troubles with its deficit. Although 3-year plans have been drawn to reduce the Greece government's deficit, uncertainty still looms for the country.
The Feds are in no hurry to increase interest rates given the weak economic data posted recently. Therefore, the carry trade carried out using the dollar would continue without disruption and this would see the value of the dollar drop in the medium term.
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